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Temporary tax increase for wealthy proposed in Governor's tax initiative

4:49 PM, Dec 5, 2011   |    comments
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SACRAMENTO -- Gov. Brown filed his tax initiative with the Attorney General's Office Monday.  The initiative would generate nearly $7 billion in dedicated funding to protect education and public safety.

In a letter to the People of California, Brown states that his initiative proposes a temporary tax increase on the wealthy.

Other details include: 

--  Millionaires and high-income earners will pay up to 2 percent higher income taxes for five years.

-- No family making less than $500,000 a year will see their income taxes rise.

-- There will be a temporary half cent increase in the sales tax. 

-- This initiative dedicates funding only to education and public safety - not on other programs.

In a statement regarding the proposal, Senate President pro Tempore Darrell Steinberg, D-Sacramento, and Assembly Speaker John A. Pérez, D-Los Angeles, stated "the Governor's revenue plan is fair, focused and forward-thinking. The plan asks the wealthiest among us to pay their fair share and takes us another major step forward on getting control of our long-term finances."

California Republican Party Chairman Tom Del Beccaro doesn't agree with increasing taxes.  In his statement, he says: "For more than a decade, Sacramento Democrats have been coming up with one tax raising scheme or another - none of which have worked. The answer to our budget and revenue problems lies not in taking more money from those already working but in finding work for those that are not."

Based on the letter, it appears Brown changed his mind about a "tiered" income tax. Originally, he wanted 1 percent tax increase on people making more than $250,000,1.5 percent on $300,000 to $500,000 and 2 percent above $500,000.

His current initiative shows it's now just those making more than $500,000.

News10/KXTV

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